The Federal Government has unveiled plans to deploy seven million smart meters under its newly launched Presidential Initiative meter, aimed at eliminating estimated billing and minimizing revenue losses in the electricity sector.
Mrs. Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, disclosed this during an interview with the News Agency of Nigeria (NAN) in Abuja on Sunday, as part of activities marking the second anniversary of the Tinubu administration.
Verheijen emphasized that the deployment of smart meters would significantly reduce revenue shortfalls for electricity distribution companies (Discos), especially for on-grid customers who currently lack metering.
This initiative is part of our broader strategy to enhance the commercial integrity of the gas-to-power sector, she said. “We are putting in place policies and regulatory frameworks that will enable cost-reflective tariffs while driving greater efficiency in the pricing and delivery of electricity.
She noted that the Federal Government is also addressing long-standing debts in the power sectorliabilities accrued from underfunded electricity subsidies and inefficient revenue recovery by Disc
Our plan is to offset these legacy debts through a combination of direct payments and promissory notes, ensuring that generation companies and gas suppliers are properly compensated,” Verheijen stated.
To strengthen financial sustainability, the administration is prioritizing the installation of meters for the majority of grid-connected consumers. According to Verheijen, this will put an end to estimated billing practices and improve revenue collection.
By ensuring that those who consume power actually pay for it, we can drastically reduce collection losses and strengthen the financial backbone of the sector,” she said.
In return for resolving outstanding debts, the government will require utility stakeholders and investors to ramp up their performance and inject new capital to expand the national grid.
Verheijen also underlined the administration’s dedication to reforming the governance of electricity distribution companies, which she described as central to the financial health of the entire electricity value chain. Using existing regulatory tools, we will ensure that Discos have both the financial strength and technical capacity to deliver more reliable electricity to Nigerian homes and businesses,” she concluded.
Source: Punch Nigeria